USD marks intermediate low amid Iran-Israel tensions; majors rally

The dollar index touched an intermediate low at 104.20 as geopolitical uncertainties prompted profit-taking in long USD positions. EUR/USD rallied 0.5% to 1.0845, breaking above the 1.0830 resistance level on technical buying. GBP/USD recovered from session lows to 1.2440, though remains vulnerable below 1.2500. USD/JPY retreated from 157.50 highs to 157.00 as safe-haven flows partially returned amid Middle East concerns. The dollar's pullback reflects a combination of overbought conditions and pre-Fed positioning adjustments. Technical analysis shows the DXY facing resistance at 104.80, with support emerging at 104.00. Traders remain cautious given ongoing geopolitical risks, though immediate currency impacts have been limited. Near-term dollar direction likely depends on Fed communication and any escalation in regional tensions.